23 November 2017
   
SA: Grace assault case still open
Immunity deal for ex-president, wife
UK minister visits Zimbabwe
Missing Mphoko is Acting President
Mysteries about Mugabe's downfall
Zim economic situation very difficult: IMF
Coup: ED in 'constant' contact with the army
ZCTU: No more thieves & thugs in cabinet
MORE NEWS
Mnangagwa: Investors already flocking in
Hippo valley income up fourfold in H1
MORE BUSINESS
VIDEO: Bob portrait hotel brawl
Jah Prayzah salutes Zimbabweans
MORE SHOWBIZ
Dembare's Mukamba goes AWOL again
Premiership back in Mutare city
MORE SPORTS
Legacy of economic ruin and upheaval
Caught between the Croc and Gucci City
MORE OPINION
 
KEN YAMAMOTO: What you didn’t know
The Coriolanus factor and its aftermath
MORE COLUMNISTS
 
 
Chinamasa says working hard to revive the 'dead' diamond sector, discussions with Chinese firms over Chiadzwa on-going
19/02/2017 00:00:00
by Manicaland Correspondent
 
 
RELATED STORIES
UNDP: Zim so rich it can be Africa's NO 1
Diamonds funding state terror: global group
Marange villagers still wait for compensation
De Beers’ Marange ‘looting’ files missing
De Beers maintain Marange denial
NGOs step-up anti-Marange fight
Israeli diamond smuggler expelled
Israelis held over diamonds
Zim blasts 'jealous howling' over Marange
Europeans keen on Zim diamonds
Zim boycotts new KP talks
Africa diamond producers blast KP
Kurotwi freed on technicality
Diamond execs deny fraud
Chiadzwa swindle 6 in court
Zim defiant after KP stalemate
KP maintains Zim diamond embargo
6 held over $2bn Marange fraud
AAG says KP future at stake
Australia, US pose KP roadblock
Diamond exports to resume: Mpofu
AAG joins Marange fray in Israel
'Nasty fight' expected over Marange
Mpofu claims new diamond discoveries
Miners to sell 10pc diamonds locally
Second diamond auction held
Diamond sales secrecy declared
Court strips ACR of Marange claim
Zim to polish, cut own diamonds
Zim eyes $2bn annual diamond windfall
Indian buyers bought 83pc auction diamonds
Mpofu dismisses US group's Marange ban
Diamond auction raised $72 million
Diamond geezers arrive for auction

MUTARE: The decision to consolidate diamond mining killed the sector and government is currently re-engaging the Chinese companies that were operating in Marange to reach an amicable settlement, finance minister, Patrick Chinamasa, has said.

Chinamasa said this while addressing Confederation of Zimbabwe Industries (CZI) business meeting in the eastern border city at the weekend.

According to the minister, the diamond mining sector is “dead” and is currently not contributing meaningfully towards the country’s foreign currency earnings.

He said unlike tobacco, chrome, gold, platinum and nickel which have contributed immensely towards Zimbabwe’s foreign currency earnings, the diamond sector has proved to be “dead”.

“As of now the diamond sector is dead. I used to visit Mutare during the hype of diamond mining and one could feel the diamond money. We need to come back to that situation again,” said Chinamasa.

He said the money can be felt in Manica and Chimoio in neighbouring Mozambique.

The minister said he was working hard with mines minister Walter Chidhakwa to turn around the fortunes of the diamond sector.

“The issue that got the sector to collapse is essentially that we felt this sector was not contributing and we decided to consolidate it. In other countries like Botswana, Namibia and Angola the State is the dominant player in the mining of diamond,” said Chinamasa.

He added: “Now, arising from the decision we took there was a lot of litigation. Minister Chidhakwa and I we are trying to engage the Chinese companies that were operating there so that we reach an amicable settlement and move on. The discussions to that effect have started,” said Chinamasa.

The minister also said ever since he became a Finance minister in 2013, the diamond projection was never met.

“Since I became the finance minister, in 2014 budget, I projected 14 million carats but I never got anything more than 3 million,” said Chinamasa.

He said people in Manicaland should understand that the DNA of local diamonds is 10 percent gems which fetches $80 per carat on market, 25 percent near gem ($15-50 per carat) and 75 percent industrial diamonds with a value of $6-10 per carat.

“We are not like Botswana or Angola with 96 percent gem. If we go into Kimberlite mining may be we may have greater percentage of near gem or gem,” said the minister.



Advertisement

In 2015, government kicked out companies that were mining diamonds in Chiadzwa as it pushed for consolidation, but some firms rejected the move and sued the state.

At the time, there were claims that large sums of money were lost through corruption with Mugabe telling the nation that as much as $15 billion was unaccounted for.

Two weeks ago, former Zimbabwe Consolidated Diamond Company (ZCDC) chief executive officer, Mark Mabhudhu, said the 2015 move violated property rights and disturbed production.


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker